U.S. Energy Secretary Anticipates Venezuela's Oil Production to Double Within Years

U.S. Energy Secretary Chris Riley said that pending agreements with American and international oil companies will lead to more than a doubling of Venezuela's crude production in the coming few years, as Washington moves to expand its investments in the Venezuelan energy sector.

Venezuela's output currently ranges between 1.1 million and 1.2 million barrels per day, after having exceeded 3 million barrels per day at its peak in the late 1990s, before sharply declining due to a lack of investment, mismanagement and U.S. sanctions.

Riley said the investments tied to the pending agreements would significantly boost the available oil supply, which could exert downward pressure on crude prices, while noting that refining capacity currently represents the biggest bottleneck to lower gasoline and diesel prices.

According to Reuters, Chevron, the largest U.S. oil producer in Venezuela, together with Italy's Eni, India's ONGC, Colombia's GeoPark and the U.S. firm GE Vernova, are slated to sign energy project agreements in the country this week.

Under the deal, North American Blue Energy Partners (NABIP), a U.S.-backed private oil company, will receive a 100‑year lease covering 17 Venezuelan oil fields with estimated reserves of about 65 billion barrels.

Reuters noted that the agreement was arranged between Washington and Caracas without a competitive process, which, together with the fact that Alejandro Betancourt, who controls the company, is under U.S. and European investigations without any charges being filed, has raised concerns among some oil firms considering investment in Venezuela.